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Henry Schein Practice Solutions Inc. (“Schein”), a provider of office management software for dental practices, has entered into a consent order to settle Federal Trade Commission (FTC) charges that it falsely advertised the level of encryption it provided to protect patient data. The FTC announced the settlement in a press release on January 5.

Schein will pay $250,000 to resolve the FTC’s claims that it deceptively marketed its Dentrix G5 software as having industry-standard encryption that would help dental practices satisfy their obligations under HIPAA to secure protected health information. In fact, Dentrix G5 used a data masking technique using cryptographic technology, rather than Advanced Encryption Standard as recommended by the National Institute of Standards and Technology. Dentrix G5 is used for office tasks including entering patient data and diagnostic information, sending appointment reminders, and submitting insurance claims.

In addition to the $250,000 payment, the consent order requires Schein not to mislead customers about the strength of the encryption in its products, and to notify all who may have purchased Dentrix G5 in reliance on the misleading statements that the product does not provide industry-standard encryption. The settlement is of particular interest because, although no data breach or HIPAA violation was alleged, the FTC’s involvement in a healthcare matter suggests the possibility of future collaboration with the U.S. Department of Health and Human Services’ Office for Civil Rights on HIPAA-related enforcement.